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CAPITAL POINT ON EOD

Capital Markets Co-operative Research Centre would like to make clear that we are not suggesting that end of day (EOD) price dislocation in Australia is necessarily equated with market manipulation and, in particular, portfolio manipulation (“Shares being manipulated”, AFR, April 14).

Our tool, the Market Quality Dashboard, shows that end of day price dislocation is more pronounced on the ASX than other comparable markets, but it does not tell us why.
The fact that EOD dislocation is high in this country relative to other comparable markets flags an issue worthy of further investigation.
Our key point is that the level of EOD price dislocation is not a good look for the Australian marketplace.
Mike Aitken
Capital Markets Co-operative Research Centre
Sydney, NSW